Vieques-
September 2006
NEW

Living and Working in Vieques..

Why use a Real Estate broker:

Real estate brokers in Vieques have recently been targeted by two
factions: One, a group who blames brokers for all Vieques' problems,
and secondly by individuals who are selling real estate without a
license.

The tensions arising from the sale of real estate to North Americans
and others are typical of this kind of
development. Real estate brokers do not contribute to that tension;
we do not force people to sell or to buy, we do not set prices. We
can recommend prices, and by law are required to recommend to
sellers that they obtain anindependent
appraisal. But the final price is always at the discretion of the
seller. Vieques is bound to go through some dislocation, some
growing pains as it develops. We, as residents, want to do
everything we can to be helpful in this process. This is our home
now too.

This article will attempt to explain how a broker is trained, what a
Broker's responsibilities are and why it is best to use a Broker in
real estate transactions.

Brokers must go through a rigorous course of study, ninety hours of
class work, and pass a difficult test. It takes the better part of a
year for a person to earn a real estate license, which must be
renewed every four years, and at least six hours of continuing
education must be taken every year, equivalent to two courses a
year.

In addition to the Department of Consumer Affairs, DACO, there is a
Real Estate Board at the Sate Department responsible for the ethical
and professional behavior of real estate brokers.

Brokers in Puerto Rico usually represent the seller. Occasionally, a
broker can become a "buyers" broker, representing only the buyer in
a specific deal or in searching for property. The seller pays the
commission, which is generally 6% but may be negotiated down,
depending on the circumstances and the size of the deal.

It is a Broker's responsibility to do the following:

share information about exclusives with other brokers so
that information is available to the widest range of individuals
interested in real estate. Most brokers on Vieques cooperate. It
is in your best interest as a seller to ask your broker for
proof that they regularly co broke, if they don't, find a broker
who does.

help evaluate the house or land for sale. This is based on
comparative values in the neighborhood, the state of the market,
(including interest rates on mortgages) and the condition and
extra values of the property. It is important to know, however,
that brokers are not appraisers, unless they have taken the
corresponding courses and tests.

advertise and show the property, any day of the week, to
individuals who express interest and to attempt to interest
individuals who are looking in specific properties.

to negotiate the price between the buyer and the seller.

To inform prospective buyers about zoning regulations;
possibility of subdivisions and other land and development
prospects

write a purchase and sale agreement, which includes a
deposit for the Broker's Escrow account

to maintain a non interest bearing escrow account

to set the closing date and to make sure that a lawyer is
selected, generally by the buyers, and to attend the closing.

responsible for setting the final walk through before
closing

responsible for closing statements, except when a mortgage
is involved in which case the bank will prepare the closing
statement

A broker can be held to account in the event he or she fails to
do any of the above.

Individuals who elect to use someone who has no license take a risk
of having no recourse in the event the individual is not ethical. In
addition, since it is against the law to sell real estate without a
license, one would be dealing with a law breaker.

These individuals will insist that they only get a referral fee, a
rose by any other name...

They do not choose to go through the arduous regime of becoming a
broker, they are breaking the law, and theydeceive the public, both buyers and sellers, by disguising
their fee and by their inability to reach the larger number of
individuals looking for real estate which are available to licensed
brokers.

There is little enough accountability in this world without asking
for trouble by utilizing the services of people who cannever be held accountable and start their "careers" by
breaking the law. We know that knowledgeable andresponsible owners do not "list" property with unlicensed
brokers. We hope that this article helps explain what a broker's
responsibilities are.

In the end, broker and seller, and broker and buyer must enjoy a
good relationship - must trust each other. If you have any
questions, please feel free to contact any of the real estate
companies represented here: Island Real Estate,
Connections, Crows Nest Realty, Rainbow Realty, Vieques Realty

Webmaster's Note * Sheila has many hats
and is also a published author Her first book was "Simple
Truths". She has asked that I put a short story she has written and I enjoyed it
a lot, even though it has nothing to do with Vieques. You can download
"Knowing" by right clicking on the link.